Indirect Tax Half Yearly Digest: January To June 2024 - PART II

Allahabad High CourtAllahabad High Court Grants Bail To Applicant Accused Of Availing Excess Input Tax Credit, As Proceedings U/S 70 And 74 Pending Since LongCase Title: Qamar Ahmed Kazmi vs. State of U.P. Citation: 2024 LiveLaw (AB) 131The Allahabad High Court has granted bail to the applicant accused of availing excess input tax credit as the proceedings under Section 70 and Section 74 of the Goods and Service Tax Act, 2017 were pending since long.Tax Dues Can't Be Collected From Director Of Company Under Liquidation Unless Provided By Some Statute: Allahabad High Court ReiteratesCase Title: Mr. Pranay Dhabhai v. State Of U.P. And 2 Others Citation: 2024 LiveLaw (AB) 299Relying on its earlier decision in A.S. Solanki Vs. State of U.P. and others, the Allahabad High Court has reiterated that tax dues cannot be collected from the director of a company under liquidation unless it has been provided in any statute.UPVAT | Computation Of Correct ITC Be Examined By Assessing Authority Not Later Than Stage Of Making Regular Assessment Order: Allahabad High CourtCase Title: Mentha And Allied Products Ltd vs. State Of U.P. And 3 Others Citation: 2024 LiveLaw (AB) 300The Allahabad High Court has held that computation of correct input tax credit can only be done till the passing of the regular assessment order by the Assessing Authority and not at a later stage. The Court held that reverse input tax credit is neither a 'rate of tax' nor a 'turnover' which can be subjected to reassessment under Section 29 of the Uttar Pradesh Value Added Tax Act, 2008.S.129(3) UPGST | Burden To Prove Double Movement Of Goods Based On Same Documents Lies On Department: Allahabad High Court ReiteratesCase Title: M/S K Y Tobacco Works Pvt. Ltd. v. State Of U.P. And 4 Others Relying on its earlier decision in M/s Anandeshwar Traders v. State of U.P. and Others, the Allahabad High Court has held that the burden to prove double movement of goods based on same documents lies on the department.S.16 GST | Authorities Not Estopped From Taking Action Against Wrongful Claim Of ITC Based On Non-Existent Firms: Allahabad High CourtCase Title: M/S Rajshi Processors Raebareli Thru. Its Partner Ashok Kumar Lakhotia v. State Of U.P. Thru. Prin. Secy. Deptt. Of State Tax,Lko. And 2 OthersThe Allahabad High Court has held that the authorities are not estopped from taking action against wrongful claim of input tax credit merely because the firms with which transactions were alleged to have been done were registered at the time of the alleged transactions.S.2(e) UPVAT | Plant, Machinery Sold After Closure Of Business Are Capital Goods, Excluded From Levy Of Tax: Allahabad High CourtCase Title: The Commissioner, Commercial Tax U.P. v. M/S R.P. Milk Made Products (P) Ltd.Case citation: 2024 LiveLaw (AB) 328The Allahabad High Court has held that plant and machinery sold after the closure of business are capital goods under Section 2(f) of the Uttar Pradesh Value Added Tax Act, 2008 and are excluded from levy of tax under the amended definition of 'business' under Section 2(e) of the Act.[S.85 Finance Act 1994] Limitation Period Prescribed In Special Statutes Prevails Over Limitation Act: Allahabad High CourtCase Title: M/S S Kumar Construction v. Commissioner Of Central Excise (Appeals), Central Goods And Services Tax (Appeals) And Another The Allahabad High Court has held that the limitations prescribed under special statutes, such as Finance Act, 1994 will prevail over the limitations mentioned in the Limitation Act, 1963.S.75(4) CGST | Allahabad HC Directs Commissioner To Take Disciplinary Action Against Adjudicating Authorities Violating PONJ Without Justifiable ReasonsCase Title: Ns Agro And Engineering Products v. State of U.P. and AnotherWhile dealing with the non-compliance of mandatory provision for opportunity of hearing under Section 75(4) of the Central Goods and Services Tax Act, 2017, the Allahabad High Court directed the Commissioner, Commercial Tax, Uttar Pradesh to take remedial action, including disciplinary proceedings against erring adjudicating authorities for violating principles of natural justice without justifiable reasons.Option Once Exercised For A Financial Year May Not Be Withdrawn Midway: Allahabad High CourtCase Title: M/S.Raman Ispat Pvt. Ltd. Versus Cce MeerutThe Allahabad High Court has held that an option, once exercised for a financial year, may not be withdrawn midway.Franchise Agreement Granted Non-Exclusive Licence Rather Than Transfer Of Right To Use Goods, VAT Not Payable: Allahabad High CourtCase Title: Commissioner Commercial Tax, U.P. At Lucknow V. M/S Pan Parag India LimitedThe Allahabad High Court has held that the franchise agreement granted a non-exclusive licence rather than a transfer of the right to use goods and the transaction does not attract Value Added Tax under the Uttar Pradesh Value Added Tax Act (UPVAT Act).Failure To Cite Judgment Does Not Render Original Judgement Flawed: Allahabad High CourtCase...

Indirect Tax Half Yearly Digest: January To June 2024 - PART II

Mariya Paliwala

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